HF 1152

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to retirement; authorizing purchase of prior 
  1.3             service credit by a certain member of the public 
  1.4             employees retirement association. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [AUTHORIZATION OF PURCHASE OF PRIOR SERVICE 
  1.7   CREDIT.] 
  1.8      (a) A member of the public employees retirement association 
  1.9   who: 
  1.10     (1) is currently employed as a school bus driver by 
  1.11  independent school district No. 51, Foley; and 
  1.12     (2) was employed during the period 1965 to 1971 as a 
  1.13  township assessor in Benton County; 
  1.14  may purchase credit in the general retirement plan of the 
  1.15  association for any prior uncredited service as a township 
  1.16  assessor, consistent with this section. 
  1.17     (b) To purchase credit for prior service under this 
  1.18  section, there must be paid to the public employees retirement 
  1.19  association, an amount equal to the present value, on the date 
  1.20  of payment, of the amount of the additional retirement annuity 
  1.21  obtained by the purchase of the additional service credit.  
  1.22  Calculation of this amount must be made using the applicable 
  1.23  preretirement interest rate for the association specified in 
  1.24  Minnesota Statutes, section 356.215, subdivision 4d, and the 
  1.25  mortality table adopted for the association.  The calculation 
  2.1   must assume continuous future service in the association until, 
  2.2   and retirement at, the age at which the minimum requirements of 
  2.3   the association for normal retirement or retirement with an 
  2.4   annuity unreduced for retirement at an early age, including 
  2.5   Minnesota Statutes, section 356.30, are met with the additional 
  2.6   service credit purchased.  The calculation must also assume a 
  2.7   future salary history that includes annual salary increases at 
  2.8   the applicable salary increase rate for the association 
  2.9   specified in Minnesota Statutes, section 356.215, subdivision 
  2.10  4d.  The member must establish in the records of the association 
  2.11  proof of service for which the purchase of prior service is 
  2.12  requested.  The manner of the proof of service must be in 
  2.13  accordance with procedures prescribed by the executive director 
  2.14  of the association.  Payment must be made in one lump sum by 
  2.15  December 31, 1995.  Payment of the amount calculated under this 
  2.16  subdivision must be made by the member.  However, the current or 
  2.17  former governmental subdivision employer of the member may, at 
  2.18  its discretion, pay all or any portion of the payment amount 
  2.19  that exceeds an amount equal to the employee contribution rates 
  2.20  in effect during the period or periods of prior service applied 
  2.21  to the actual salary rates in effect during the period or 
  2.22  periods of prior service, plus interest at the rate of six 
  2.23  percent a year compounded annually from the date on which the 
  2.24  contributions would otherwise have been made to the date on 
  2.25  which the payment is made.